Mitchells & Butlers – Sales Bounce Back In Q2 But Outlook On Costs Is Bleak
Mitchells & Butlers plc (LON:MAB)’s first half revenue of £1.2bn reflects a 1.0% increase in like-for-like (LFL) sales compared to pre-pandemic levels. Sales benefited from the reduced rate of VAT on food and non-alcoholic drinks, which has now ended. An increase of 6.9% in LFL food sales was accompanied by a similar sized fall in drinks. Underlying operating profit of £120 was up from a loss of £124m last year. Inflationary pressures from wages, food and energy continue to present a “major challenge” to the sector and are expected to impact margins in the short to medium term. Q1 2022 hedge f...